Safaricom’s Little Cab triggers price war with Uber

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Safaricom-backed online taxi-hailing app Little Cab has sparked off a price war with rivals Uber and Mondo Ride by setting lower tariffs compared to its two global competitors.

Little Cab, developed by local IT firm Craft Silicon, is charging passengers Sh55 per kilometre and Sh4 per minute – with no flat base charge or price surges during peak hours or heavy traffic jams.

The e-hailing app set to be formally launched next month is banking on the lower fare to woo passengers to the platform and gain market share in the lucrative but currently chaotic taxi industry.

“We want to offer a value to our customers. We have noted that cost is not transparent among most of the apps that are in the market,” said Kamal Budhabhatti, founder of Craft Silicon.

“We are still on a pilot,” said Budhabhatti, who revealed that Little Cab had signed more than 1,000 cabbies, mostly from Easy Taxi which exited the Kenyan market in May.

Safaricom will offer wireless Internet in all Little Cab taxis and jointly with Craft Silicon, give its drivers free Samsung smartphones.
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Source: Business Daily 28 June 2016